§1127 — Title 41 Public Contracts | U.S. Code

Summary

Each year the Administrator must set a benchmark compensation amount to use for certain contract rules. The amount is the middle (median) pay of senior executives at all benchmark corporations for the most recent year with available data. A benchmark corporation is a U.S. company whose voting stock is publicly traded and that had more than $50,000,000 in sales that year. Compensation means total wages, salary, bonuses, and deferred pay for the fiscal year as shown in the employer’s accounting. Senior executives are the five highest-paid managers at each home office and each business segment. To pick the amount, the Administrator looks at commercially available executive-pay surveys and talks with the Director of the Defense Contract Audit Agency and other agency officials.

Title 41, §1127

Public Contracts — Source: USLM XML via OLRC

(a)In this section:

(1)The term “benchmark compensation amount”, for a fiscal year, is the median amount of the compensation provided for all senior executives of all benchmark corporations for the most recent year for which data is available at the time the determination under subsection (b) is made.

(2)The term “benchmark corporation”, with respect to a fiscal year, means a publicly-owned United States corporation that has annual sales in excess of $50,000,000 for the fiscal year.

(3)The term “compensation”, for a fiscal year, means the total amount of wages, salary, bonuses, and deferred compensation for the fiscal year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the fiscal year.

(4)The term “fiscal year” means a fiscal year a contractor establishes for accounting purposes.

(5)The term “publicly-owned United States corporation” means a corporation—

(A)organized under the laws of a State of the United States, the District of Columbia, Puerto Rico, or a possession of the United States; and

(B)whose voting stock is publicly traded.

(6)The term “senior executives”, with respect to a contractor, means the 5 most highly compensated employees in management positions at each home office and each segment of the contractor.

(b)For purposes of section 4304(a)(16) of this title and section 3744(a)(16) of title 10, the Administrator shall review commercially available surveys of executive compensation and, on the basis of the results of the review, determine a benchmark compensation amount to apply for each fiscal year. In making determinations under this subsection, the Administrator shall consult with the Director of the Defense Contract Audit Agency and other officials of executive agencies as the Administrator considers appropriate.

Notes & Related Subsidiaries

Repeal of Section Pub. L. 113–67, div. A, title VII, § 702(b)(1), (c), Dec. 26, 2013, 127 Stat. 1189, repealed this section applicable only with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after Dec. 26, 2013. Pub. L. 113–66, div. A, title VIII, § 811(c)(1), (d), Dec. 26, 2013, 127 Stat. 806, repealed this section applicable with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after Dec. 26, 2013.

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 1127(a)(1)41:435(b).Pub. L. 93–400, § 39, as added Pub. L. 105–85, title VIII, § 808(c)(1), Nov. 18, 1997, 111 Stat. 1837; Pub. L. 105–261, title VIII, § 804(c)(1), Oct. 17, 1998, 112 Stat. 2083. 1127(a)(2)41:435(c)(3). 1127(a)(3)41:435(c)(1). 1127(a)(4)41:435(c)(5). 1127(a)(5)41:435(c)(4). 1127(a)(6)41:435(c)(2). 1127(b)41:435(a).

Editorial Notes

Amendments

2021—Subsec. (b). Pub. L. 117–81 substituted “section 3744(a)(16)” for “section 2324(e)(1)(P)”.

Statutory Notes and Related Subsidiaries

Effective Date

of RepealRepeal by Pub. L. 113–67 applicable only with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after Dec. 26, 2013, see section 702(c) of Pub. L. 113–67, set out as an

Effective Date

of 2013 Amendment note under section 4304 of this title. Repeal by Pub. L. 113–66 applicable with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after Dec. 26, 2013, see section 811(d) of Pub. L. 113–66, set out as an

Effective Date

of 2013 Amendment note under section 4304 of this title. Exclusive Applicability of Provisions Limiting Allowability of Compensation for Certain Contractor Personnel Pub. L. 105–85, div. A, title VIII, § 808(f), Nov. 18, 1997, 111 Stat. 1838, provided that: “Notwithstanding any other provision of law, no other limitation in law on the allowability of costs of compensation of senior executives under covered contracts shall apply to such costs of compensation incurred after January 1, 1998.” Definitions for Purposes of section 808 of Pub. L. 105–85 Pub. L. 105–85, div. A, title VIII, § 808(g), Nov. 18, 1997, 111 Stat. 1838, as amended by Pub. L. 105–261, div. A, title VIII, § 804(c)(2), Oct. 17, 1998, 112 Stat. 2083, provided that: “In this section [see Tables for classification]: “(1) The term ‘covered contract’ has the meaning given such term in section 2324(l) of title 10, United States Code [see 10 U.S.C. 3741], and section 306(l) of the Federal Property and Administrative Services Act of 1949 ([former] 41 U.S.C. 256(l)) [see 41 U.S.C. 4301]. “(2) The terms ‘compensation’ and ‘senior executives’ have the meanings given such terms in section 2324(l) of title 10, United States Code [see 10 U.S.C. 3741 as to “compensation” and former 10 U.S.C. 2324(l)(5) as to “senior executives”], and section 306(m) of the Federal Property and Administrative Services Act of 1949 [see 41 U.S.C. 4301].”

§1127 Determining benchmark compensation amount

Summary

Title 41, §1127

Notes & Related Subsidiaries

Historical and Revision Notes

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata